Hooters, the U.S.-based restaurant chain famous for its chicken wings and waitstaff in revealing outfits known as “Hooters Girls,” has filed for bankruptcy protection. HOA Restaurant Group submitted the Chapter 11 filing on Monday in the North Texas Bankruptcy Court in Dallas.
The company cited mounting debts as the reason for its financial struggles but stated its intention to remain open and resolve its issues within a few months. A group of original founders, who own nearly a third of Hooters’ U.S. locations—including about half of its highest-volume restaurants—plans to purchase and manage additional outlets.
“Our renowned Hooters restaurants are here to stay, and we are taking action to strengthen our business to better serve our valued customers over the long term,” the company announced on its website.
Founded in Clearwater, Florida, in 1983 and headquartered in Atlanta, Georgia, Hooters has faced various challenges over the years. Its financial difficulties became more apparent after Hendrick Motorsports ended its sponsorship of Chase Elliott’s No. 9 NASCAR car in 2022 due to unmet financial commitments.
The chain has also faced legal issues, including lawsuits related to its hiring practices, specifically its policy of employing only “Hooters Girls” to serve customers. In 2022, Hooters agreed to pay $250,000 and provide additional relief to settle a racial and color discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission concerning a location in Greensboro, North Carolina.
In 2019, Hooters’ hotel-casino on the Las Vegas Strip was sold to an Indian hotel company and rebranded as the OYO Hotel and Casino. Additionally, in 2017, the company experimented with a restaurant concept that did not feature waitstaff in its signature revealing outfits, testing a new approach to its traditional business model.
